Plots a moving average computed using session volumes (London/NY and Tokyo)

Types of Volumes

High Volume Bars

These will often define what’s going to happen next, when analyzing the price in conjunction with the volumes. Major tops and bottoms in the market will often be made on high volume, in what’s called an accumulation or distribution process (professional buying/selling respectively). A wide range bar with high volume, closing on its highs, is a bullish bar, signaling a trend continuation (vice-versa for bearish bars).

Low Volume Bars

Low volume bars indicate either a temporary lack of demand/supply in the market. These are often good entry spots after significant demand (or supply) has been seen.

Churn Bars

These are price bars that have a narrow spread (or range, which is the difference between the bar’s high and low) and high volume. Bars like this often denote supply as the smart money prevents the price from moving further by dumping sell orders into the market – that’s why it has a narrow range and high volume (vice-versa for demand patterns, after a market downtrend). Because of this, they often show up before market corrections and significant trend changes.

These are more significant is the market is making new highs or lows, so that the high volume doesn’t come from locked-in traders waiting to get out at a profit or break-even in a former support/resistance.

Thrust Bars

Upthrusts are bars which, at the right place, can be a confirmation of weakness in the market (vice-versa for downthrusts, in a market bottom). They’re maneuvers to get stop-losses and stop orders, as well as to test the supply/demand in a given price level. They have more meaning when they appear:

Near a support/resistance

Near a price area where there was previous supply/demand

On new highs/lows in the market

Supply Test/Demand Test Bars

Test-like bars are bars that when at the right place, they’re either testing the supply or demand in the market. There are 2 factors to consider when a test bar appears.

1. Testing an important area

It must appear in the same price zone as a previous:

Demand/Supply in the market, marked by Analytical VSA Trader

Very high volume/high volume bars, marked by red/violet volume histograms

Support/Resistance or Trendline

If price isn’t in any of these critical areas, test-like bars shouldn’t be considered real tests and should be dismissed.

2. Success/failure of tests

A supply (bullish) test is successful if the prices rally in the next few bars afterwards; failed otherwise

A demand (bearish) test is successful if the prices downtrend in the next few bars afterwards; failed otherwise

Charts

Set to true to set GMT Offset – Set to true to set GMT offset manually. It’s not necessary to set GMT offset manually if no warning message appears on the chart. The indicator automatically detects it and saves it for further use.

Set your broker’s GMT Offset – If the above setting is true, the value inserted here should be your broker’s offset.

History – Number of bars to calculate the volumes for

Moving Average Period – Period of the volumes moving average. For the H4 timeframe and above, it should be set to 20, due to a higher variability in volumes on high timeframes. Otherwise, 50 is a good value.

Check for updates automatically – Set to true for the indicator to check and notify of updates automatically

Alerts Module

Low Volume Alert – Set to true to alert of low volume bars

High Volume Alert – Set to true to alert of high volume bars

Churn Alert – Set to true to alert of churn bars

Test Alert – Set to true to alert of test bars

Thrust Alert – Set to true to alert of thrust bars

Email Alerts – Set to true to email alerts. In Metatrader, go to Tools > Options > Email tab to configure it

Push Notification Alerts – Set to true to send alerts to your Smartphone. In Metatrader, go to Tools > Options >Notifications tab to configure it

Disclaimer

The information contained in this website is for general information purposes only. The information is provided by Analytical Trader and while we endeavour to keep the information up to date and correct, we make no representations or warranties.

About Us

We’re a team of 2 young traders, with a passion for financial markets and trading. We use price action and volumes to trade a wide range of markets and timeframes. In the website you can find information about our trading strategy and software.

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CFTC RULE 4.41 - HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.